Major U.S. Banks Eye Joint Stablecoin Initiative

May 22 (Reuters) - Major U.S. banks, including JPMorgan Chase and Bank of America, are contemplating a partnership to issue a joint stablecoin, as reported by The Wall Street Journal on Thursday.

According to the report, the plan aims to facilitate smoother transactions between cryptocurrencies and traditional fiat currencies, leveraging stablecoins that are commonly pegged to assets like the U.S. dollar.

While talks are still in early stages and subject to change, the idea is to allow additional banks to join the consortium, enhancing the digital currency's utility beyond its initial backers. No official comment has been made by the banks as of now.

(With inputs from agencies.)